Analysis of Geographic Areas
Netflix Inc. operates in 2 regions: United States and International.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Area Asset Turnover
Netflix Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| International |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The asset turnover ratios for the geographic areas indicate differential growth and utilization patterns over the five-year period analyzed.
- United States
-
The ratio began at 4.85 in 2020 and experienced a decline in 2021 to 4.27, indicating a slight decrease in asset efficiency or revenue generation relative to assets deployed in this region during that year.
From 2021 onwards, a recovery and consistent upward trend is observable, with the ratio increasing to 4.74 in 2022, followed by further growth to 5.06 in 2023 and reaching 5.81 by 2024. This steady improvement suggests enhanced asset utilization and possibly improved operational efficiencies or revenue growth in the U.S. market.
- International
-
The international asset turnover ratio demonstrates a consistent, year-on-year increase over the entire period, starting from 18.36 in 2020 and rising continuously to 24.72 in 2024.
This growth reflects a steadily improving ability to generate revenue from assets in international markets, indicating robust expansion or enhanced operational leverage outside the domestic market.
Overall, international operations show a significantly higher asset turnover ratio compared to domestic operations, suggesting that assets deployed internationally are generating revenue at a much higher rate. Both regions show positive trends in recent years, with the international segment displaying a strong and sustained upward trajectory, and the United States recovering from a dip in 2021 to attain its highest ratio in 2024.
Area Asset Turnover: United States
Netflix Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived tangible assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Area asset turnover = Revenues ÷ Long-lived tangible assets
= ÷ =
- Revenues
- The revenues exhibit a consistent upward trend over the five-year span. Starting at 10.8 billion USD in 2020, revenues increased annually, reaching 16.1 billion USD by 2024. The growth appears to accelerate particularly between 2023 and 2024, where the increase is the most pronounced, indicating a robust expansion in the United States market during that period.
- Long-lived tangible assets
- The value of long-lived tangible assets shows some fluctuation across the years. Beginning at approximately 2.22 billion USD in 2020, these assets rose sharply to about 2.83 billion USD in 2021. However, the asset base then slightly declined over the next two years, dropping to around 2.75 billion USD in 2022 and stabilizing near 2.73 billion USD in 2023. A modest increase is noted in 2024, ending at approximately 2.77 billion USD. This pattern suggests a period of asset expansion followed by consolidation and minor growth.
- Area asset turnover
- The area asset turnover ratio, which measures revenue generated per unit of tangible assets, demonstrates a generally improving efficiency trend. The ratio decreased from 4.85 in 2020 to 4.27 in 2021, indicating lower asset utilization that year. However, a steady recovery follows, with the ratio increasing to 4.74 in 2022, then improving further to 5.06 in 2023, and reaching a high of 5.81 in 2024. This upward trend signals an increasing effectiveness in the use of tangible assets to generate revenues.
Area Asset Turnover: International
Netflix Inc.; International; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived tangible assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Area asset turnover = Revenues ÷ Long-lived tangible assets
= ÷ =
- Revenues
- The revenues have demonstrated a consistent upward trajectory over the five-year period. Starting at approximately US$14.2 billion in 2020, revenues increased steadily each year, reaching about US$22.9 billion in 2024. This represents a significant growth rate, suggesting expanding market presence or enhanced sales efforts in the international segment.
- Long-lived tangible assets
- The value of long-lived tangible assets has shown variability. Beginning at roughly US$773 million in 2020, the asset base grew to nearly US$937 million in 2021, followed by a decline to about US$880 million in 2022. This downward trend continued with a further decrease to US$844 million in 2023, before rising again to approximately US$926 million in 2024. These fluctuations may indicate periodic asset disposals, impairments, or varying capital expenditures in fixed assets over time.
- Area asset turnover ratio
- The area asset turnover ratio exhibits a positive and consistent increase from 18.36 in 2020 to 24.72 in 2024. This rising ratio points to improved efficiency in utilizing tangible assets to generate revenue, with notable acceleration in asset turnover particularly after 2021, reaching its highest level in the final year. The trend suggests enhanced operational effectiveness or better asset management in the international operations.
Revenues
Netflix Inc., revenues by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| International | |||||
| Total |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual geographic area revenues reveals consistent growth across all regions over the five-year period from 2020 to 2024.
- United States Revenues
- The revenue in the United States shows a steady upward trend, increasing from $10,800,000 thousand in 2020 to $16,100,000 thousand in 2024. The growth is gradual but continuous, reflecting a compound increase in domestic market earnings. The increments each year suggest sustained demand and effective revenue generation within this market.
- International Revenues
- The international segment exhibits a stronger growth trajectory compared to the domestic market. Starting at $14,196,056 thousand in 2020, international revenues increase to $22,900,966 thousand by 2024. This represents robust expansion, indicating significant penetration and successful market development outside the United States. The international revenue increases notably year over year, highlighting the growing importance of this segment to the overall business.
- Total Revenues
- Total company revenues follow the combined growth pattern of the geographic segments, rising from $24,996,056 thousand in 2020 to $39,000,966 thousand in 2024. The overall increase is driven more strongly by international revenues but supported consistently by domestic revenue growth. This comprehensive upward trend underscores effective scaling efforts and diversified revenue streams contributing to overall financial health.
Long-lived tangible assets
Netflix Inc., long-lived tangible assets by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| International | |||||
| Total |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- United States Long-Lived Tangible Assets
- The value of long-lived tangible assets in the United States demonstrates an overall growth trend from 2020 through 2024. Starting at approximately $2.22 billion in 2020, the assets increased significantly to about $2.83 billion in 2021. A slight decline is observed in 2022 and 2023, with values around $2.75 billion and $2.72 billion respectively, followed by a moderate recovery to nearly $2.77 billion in 2024.
- International Long-Lived Tangible Assets
- International assets show a fluctuating but generally positive trend over the same period. Beginning at roughly $773 million in 2020, the value rose to approximately $937 million in 2021. It then decreased to about $880 million in 2022 and further to $844 million in 2023. However, there was a notable rebound to around $926 million in 2024, approaching the previous peak.
- Total Long-Lived Tangible Assets
- Total assets, combining U.S. and international values, increased from about $3.00 billion in 2020 to a peak near $3.77 billion in 2021. Following this peak, there was a decline in 2022 and 2023 to approximately $3.63 billion and $3.57 billion respectively. The total asset value then rose again in 2024, reaching nearly $3.70 billion.
- Summary of Trends
- Overall, the data indicates that long-lived tangible assets experienced significant growth in 2021, followed by a modest contraction over the next two years and a partial recovery in 2024. Both U.S. and international assets exhibit similar patterns, with the U.S. consistently representing the larger proportion of assets. The fluctuations suggest possible strategic adjustments or market-related impacts affecting asset valuations or capital expenditures across geographic regions.